When you file for bankruptcy, there are a lot of things taken into consideration. One thing you might wonder is whether you’ll be able to keep your current or old credit cards after you have filed. While it’s often not a good idea to hang onto credit cards if you have had to file for bankruptcy, there are certain situations in which you might need one. For example, you might need to reserve a hotel room or rent a car, and they could require a credit card to do so. For a situation such as that, you might want to keep your credit card after filing for bankruptcy. Is it allowed?
Cards Without a Balance
If you have a credit card that currently has a zero balance, you don’t have to include it with your list of debts. You can hold on to that credit card as if nothing was going awry with your finances. You are under no obligation to inform that particular credit card company that you’re filing for bankruptcy either, though they often find out anyway. If so, that card might have increased interest rates, so keep that in mind.
Reaffirming a Credit Card
One option you have is to reaffirm a credit card after you have filed for bankruptcy. This is the process of removing a particular credit card from your list of debts. You will still have the debt on the card and you will still be obligated to make your monthly payments. If that card is important to you, it may be a good idea to do that. If there is a high balance on it and you don’t have a way to pay it back on time, reaffirming the card may not be in your best interest. In most cases, reaffirming a credit card should be a last resort.
Getting a new Card
After bankruptcy, you should consider staying away from more credit cards, but again, there are some situations in which you could benefit from having one on hand. If you really need a credit card after bankruptcy and were unable to keep any that you previously had, you could apply for a secured credit card or ask someone to cosign with you on a traditional card. After six to twelve months of on-time payments, you can apply for your own credit card.
Contacting a Bankruptcy Lawyer
Sometimes the best way to figure out what to do during the bankruptcy process is by speaking with an attorney. Contact a bankruptcy lawyer, like a bankruptcy lawyer from Kamper & Estrada, PLLC, today to learn more about your options concerning credit cards.